In this week's #StratChat session, we talked about how AI is changing strategy, the risk of blind spots, and how consultants can stay ahead in a fast-changing world. Here are the main takeaways from the discussion on January 30, 2025.
The Risk of Blind Spots in Strategy
One big challenge in strategy is not seeing what’s coming. The group discussed how tools like PESTLE help cover key areas. But these tools aren’t perfect—especially when markets change fast.
AI might help find hidden risks and opportunities. AI can process huge amounts of data without human bias. There is uncertainty about whether AI can spot gaps if those same gaps exist in the data it learns from.
How AI Can Help in Strategy
Can AI really improve strategic decisions? The group explored AI’s ability to:
- Find patterns that humans might miss.
- Sort and rank information to avoid overload.
- Predict possible outcomes and future risks.
But there are challenges. AI can sometimes make up false information. AI may not fully understand company culture and politics.
Another key question: Could AI change traditional strategy consulting? Large firms rely on deep research—could AI take over this role and let companies manage strategy themselves?
AI vs. Human Thinking in Strategy
AI is useful, but it can’t replace human knowledge. AI can support decision-making, but the best insights still come from real-world experience and company know-how.
The group also discussed using AI in strategy workshops, where it could provide instant analysis to guide discussions.
Some popular AI tools mentioned: ChatGPT, Meta AI, Claude, Perplexity, and Microsoft’s AI—each offering different strengths for research and strategy.
The Future of Strategy Consulting
AI is already changing the consulting world. Some big firms are launching AI tools and cutting jobs, showing that AI-driven consulting is no longer a future trend—it’s happening now.
A key question: How can small firms and independent consultants compete with big firms that centralise industry knowledge into AI models?
The answer: Consultants must learn AI skills fast. AI could help small teams think faster and compete with big players if used well.
Key Takeaways and What’s Next
The group ended with thoughts on how strategy consultants must adapt in an AI-driven world. Key points included:
- Learning AI tools while keeping a human touch.
- Understanding company culture that AI might miss.
- Using AI in strategy while staying flexible and focused.
This session gave valuable insights into AI’s growing role in strategy. The challenge will be finding the right mix of technology and human expertise.
Frequently Asked Questions (FAQs)
How can AI help in strategy development?
AI can enhance strategy development by identifying patterns, sorting and ranking information to prevent overload, and predicting possible outcomes and risks.
Can AI replace human strategists?
Not yet. AI can support decision-making, but human expertise, real-world experience, and company know-how remain essential for strategic success.
What challenges does AI face in strategy consulting?
AI can sometimes generate false information and may not fully understand company culture and internal politics, which are crucial for effective strategy development.
How is AI changing the strategy consulting industry?
AI is enabling firms to automate research and analysis, leading to mass layoffs in some big consulting firms while giving smaller teams the ability to compete more effectively.
How can independent consultants compete with AI-driven big firms?
Independent consultants must quickly develop AI skills to leverage technology for faster insights and enhanced strategic decision-making.